Perhaps the most interesting type of reform to have emerged from the global financial crisis is the call for “macroprudential” regulation. Macroprudential regulation, in broadest terms, seeks to manage…

Dealing with housing bubbles can get messy for central banks.
ShutterstockSeptember 25, 2014

Australia’s central bank has formally flagged the use of macroprudential tools to address what it called “unbalanced” lending in its most recent Financial Stability Review. Loan-to-valuation ratio (LVR…